Asia Pacific Marine Hybrid Propulsion Market Size, Share & COVID-19 Impact Analysis, By Operation Type (Parallel Hybrid Propulsion System and Serial Hybrid Propulsion System), By Component (IC Engine, Generator, Power Management System, Battery, Gear Box, and Others), By Ship Type (Container Ship, Passenger Ship, Fishing Vessel, Yacht, Tanker, and Others), By Installation (Linefit and Retrofit), and Regional Forecast, 2023-2030

Asia Pacific is the second largest region in the global marine hybrid propulsion market. The Asia Pacific marine hybrid propulsion market size is predicted to grow at a CAGR of 13.7% during the forecast period. The global market for marine hybrid propulsion is projected to grow from USD 4.62 billion in 2022 to USD 11.59 billion by 2030.

Asia Pacific is an important region for shipyards and waterborne shipping. Moreover, China's shipbuilding industry is highly modernized and geographically expanding. China's shipbuilding industry is responsible for providing the Chinese navy with efficient and advanced ships capable of destroying enemy ships. Such factors act as catalysts in the development of the Asia Pacific marine hybrid propulsion market growth. Furthermore, Asia-Pacific is expected to maintain its dominance in the global market, especially in China, South Korea, and Japan, due to some individual advantages. These include relatively low wages, strong government support, and a strong industrial context.

LATEST TRENDS

Implementation of Emission Free Propulsion Systems for Fishing and Passenger Ferries in the Region

Shipping is a very significant source of pollution worldwide. In recent times, a number of actions and instruments have been developed to combat climate change, reduce greenhouse gases (GHG) from ocean emissions, and advance sustainable development goals. Various government agencies and ministries are taking multiple steps to reduce marine pollution. For instance, in June 2022, government policies will support the wider adoption of all-electric and battery-hybrid technologies in Asia, which currently accounts for less than 7% of the world's electrified commercial vehicles. Government policies originating in Busan, Tokyo, and Singapore will play a key role in promoting the widespread adoption of electric and hybrid battery technologies in Asia.

DRIVING FACTORS

Increase in Sea Trade Activities in the Region to Boost Market Growth

In recent times, sea trade activities have been escalating in the Asia Pacific region, especially in countries such as India, China, and Japan. According to a report by the United Nations Conference on Trade and Development (UNCTAD), Asia remained the world's leading center for ocean freight handling in 2021, accounting for 42% of exports and 64% of imports. In 2021, Asian container exporters were in the top five, accounting for almost half of the shipment volume, including China, Vietnam, South Korea, and Japan. In the 12-month period ending 1 January 2022, China recorded the second-highest tonnage increase (13%) among the top 25 shipping countries. Owing to such factors, the market is anticipated to grow in the region.

RESTRAINING FACTORS

Lower Cost of Conventional Propulsion System may Hamper the Market 

The installation cost of a conventional propulsion system is much lower than that of a hybrid or diesel - electric propulsion system. The installation of the hybrid propulsion system requires different and improved training for the ship's crew, as the system is completely different from the mechanical system and includes extensive automation. Moreover, the installation cost of an electrical propulsion system increased due to the complexity of the system as compared to the conventional system. For instance, the capital cost of a diesel engine installation is approximately USD 25.7 million, whereas the cost of a combined gas and steam engine (CCGT) is USD 63.8 million. Due to this parameter, the market for marine hybrid propulsion systems may be hampered.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, IHI Corporation (Japan), Mitsubishi Heavy Industries (Japan), MAN Energy Solutions (Germany), and Siemens (Germany) are the key players in the Asia Pacific market due to their strong R&D investments, focus on the increase in technological development, and various ambitious contracts in the Asia Pacific marine hybrid propulsion market share.

Additionally, in December 2022, an untested Propeller signed a contract to supply complete propulsion systems, remanufacturing solutions, and thrusters for two other sailing freighters under construction. Hundested Propeller manufactures hybrid marine gears, CP propellers and propeller shafts, stern tubes, and thrusters for TOWT.

LIST OF KEY COMPNAIES PROFILED:

• IHI Corporation (Japan)


• Veem Ltd (Australia)


• Nidec Industrial Solutions (Italy)


• MAN Energy Solutions (Germany)


• Siemens (Germany)


• Mitsubishi Heavy Industries (Japan)


• Wärtsilä Corporation (Finland)


• Steyr Motors (Austria)


• Volve Penta (Sweden)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Kongsberg Maritime signed a follow-up order from customer Grimaldi Group for the supply of engineering and technology for two 7,800 meters long (LM) roll-on-roll-off (Ro-Ro) vessels to be built at Chinese merchant Jinling Shipyard. The two new ships will operate in the port in hybrid mode and with full battery electric systems.


• October 2022: Marine equipment manufacturer VEEM has been awarded a contract by defense contractor BAE Systems Australia to manufacture two propeller blades and hubs as part of the Hunter Class Frigate Program (HCFP) Demonstrator Program. The deal is valued at USD 1.7 million and is expected to close by the second quarter of 2024.


• November 2022: Hyundai Heavy Industries recently commissioned Korea's first next-generation large electric propulsion vessel equipped with intelligent technology. The unique vessel has dual propulsion and can be powered entirely by battery or LNG-powered engines or in hybrid mode, where batteries complement the engines.

REPORT COVERAGE

The market research report provides both qualitative and quantitative insights into the market. The report provides a thorough analysis of the Asia Pacific market size & growth rate for all possible segments in the market. Along with the market forecast, the research report provides an elaborative analysis of the market dynamics, insights, and competitive landscape analysis. Various key insights presented in the report are overview of the number of procedures, price analysis of types of products, regulatory scenario by key countries, pipeline analysis, new product launches, key industry developments – mergers, acquisitions & partnerships, and the impact of COVID-19 on the market.

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